Disclaimer - There likely exists something like this out there, but I wasn’t able to find it so I created my own version.
The Triple MAC(D)
This strategy uses three variants of the MACD Indicator in order to locate entries and exits on the 15m timeframe. Currently, I am about 20% through a 500 trade backtest, with a success % of around 75+ and an average R:R of 1:3 when following a strict exit strategy. Backtesting has been performed on USDJPY, and a second 100 trade backtest will be performed on EURUSD at a later date. If anyone backtests this strategy and wishes to share their experience please feel free to do so. I have also included a video by Data Trader that introduces how to set up the Zero Lag MACD and Impluse MACD as well as their location on Trading View.
A note on exits, depending on the market you have an option to use the ZERO LAG MACD cross as your exit or use the regular MACD cross. If you have to pick one I suggest the regular MACD as this is what I have used for backtesting.
Indicators
- MACD - 12, 26, close, 9
- Zero Lag MACD Enhanced 1.2 - 12, 26, 9, 9, 1.5
- Impulse MACD (IMACD_LB) - 34, 9
- 200 EMA
Long
Entry
- Price ABOVE 200 EMA
- Impulse MACD ABOVE zero line, NOT flat at all
- Zero Lag MACD Line crosses ABOVE Signal Line
Exit
- MACD Line crosses BELOW MACD SIgnal Line
OR - Zero Lag MACD Line crosses BELOW Signal Line
Short
Entry
- Price BELOW 200 EMA
- Impulse MACD BELOW zero line, NOT flat at all
- Zero Lag MACD Line crosses BELOW Signal Line
Exit
- MACD Line crosses ABOVE MACD SIgnal Line
OR - Zero Lag MACD Line crosses ABOVE Signal Line
Stop Loss
For backtesting on USDJPY I use a set Lot Size for my account and a standard SL of 100 pips, however, you could also use the previous low if you prefer, or even go for 50 pips if you prefer higher risk. I may actually review this after backtesting and go back to a 50 pip SL as the potential for high reward trades increases.
Notes
It’s important that you don’t trade when the Impulse MACD is flat, this often leads to false signals. Even when is it heading in the opposite direction of your trade, there is still a better opportunity for profitable trades with a moving I-MACD than a flat one.